Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.

The pizzerias cost formulas appear below:

In November, the pizzeria budgeted for 1,650 pizzas at an average selling price of $18 per pizza and for 250 deliveries.

Data concerning the pizzerias actual results in November were as follows:

Required:

1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Fixed Cost per Month Cost per Pizza $ 4.70 Cost per Delivery $ 5,970 $ 640 $ 0.60 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 3.40 $ 1.80 $ 660 $ 424 $ 1,930 $ 760 $ 0.06 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 1,750 230 $ 32,080 $ 7,750 $ 5,910 $ 900 $ 782 $ 992 $ 424 $ 1,930 $ 808 Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Flexible Results Budget 1,750 Planning Budget 230 32,080 7,750 5,910 900 Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income 782 992 424 1,930 808 19,496 $ 12,584